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Split Architecture SPARC Deliverable 2.2 Revised definition of use cases and carrier requirements Editor: Fritz-Joachim Westphal, Mario Kind, Deutsche Telekom AG Deliverable nature: Report (R) Dissemination level: Public (PU) (Confidentiality) Contractual delivery date: M24 Actual delivery date: M27 Version: 1.0 Total number of pages: 80 Keywords: Use cases, carrier requirements, techno-economic analysis, business developments Abstract This document reviews the use case access/aggregation and the related defined use cases on Seamless MPLS or SDN approaches to MPLS transport, multi-service/-provider environments (service creation), mobile backhaul, Software Defined Networking application in context of IEEE 802.11 compliant devices and dynamic control composition. It compromises the feedback from the work packages 3, 4 and 5 about development of concepts, prototypical implementation and validations. In addition it contains a review of the selected carrier requirements and groups of requirements accordingly. Moreover the deliverable provides a comprehensive overview of the results of task 2.3, a techno-economic evaluation of a mobile backhaul network scenario with detailed analysis of capital as well as operational expenditures. In addition uncertainties based on the estimated assumptions are covered by a sensitivity analysis. Beside techno-economic analysis, the evaluation of the business environment was continued and scenarios about future directions developed, verified and evaluated. Deliverable 2.2 Split Architecture - SPARC Disclaimer This document contains material, which is the copyright of certain SPARC consortium parties, and may not be reproduced or copied without permission. In case of Public (PU): All SPARC consortium parties have agreed to full publication of this document. In case of Restricted to Programme (PP): All SPARC consortium parties have agreed to make this document available on request to other framework programme participants. In case of Restricted to Group (RE): All SPARC consortium parties have agreed to full publication of this document. However this document is written for being used by <organisation / other project / company etc.> as <a contribution to standardisation / material for consideration in product development etc.>. In case of Consortium confidential (CO): The information contained in this document is the proprietary confidential information of the SPARC consortium and may not be disclosed except in accordance with the consortium agreement. The commercial use of any information contained in this document may require a license from the proprietor of that information. Neither the SPARC consortium as a whole, nor a certain party of the SPARC consortium warrant that the information contained in this document is capable of use, nor that use of the information is free from risk, and accepts no liability for loss or damage suffered by any person using this information. Imprint [Project title] Split Architecture [short title] SPARC [Number and title of work package] WP2 – Use cases / Business scenarios [Document title] D2.2 Revised definition of use cases and carrier requirements [Editor] Mario Kind, Deutsche Telekom AG [Work package leader] Fritz-Joachim Westphal, Deutsche Telekom AG [Task leader] Fritz-Joachim Westphal, Deutsche Telekom AG Copyright notice © 2012 Participants in project SPARC Optionally list of organisations jointly holding the Copyright on this document © SPARC consortium 2012 Page 2 of (80) Deliverable 2.2 Split Architecture - SPARC Executive summary Besides analysing new business opportunities of a Split Architecture, the objective of work package 2 is the description of use-cases and the definition of carrier-grade requirements, derived from these use cases. Both will be provided as input to the development of the technical aspects of a SplitArchitecture in work package 3. The second and final contribution to fulfil the objective is covered in this deliverable. The deliverable gives an overview of the work on the use case access/aggregation, which was selected from three use- cases covering all important aspects of a carrier environment as defined for next-generation-networks by ITU-T. The use case was subdivided into six sub-use cases representing service areas as well: - General architecture - Seamless MPLS or SDN approaches to MPLS transport - Multi-service and multi-provider environments (service creation) - Mobile backhaul - Software Defined Networking application in context of IEEE 802.11 compliant devices - Dynamic control composition Each use case was covered by work streams, starting with a set of requirements (WP2), followed by the development of concepts (WP3) and prototypical implementations (WP4) and finally testing of functional and performance aspects (WP5). Overall it is guaranteed that each use case is sufficiently covered by the developments of SPARC. The work was based on 67 requirements detailed in D2.1. They were prioritized with respect to overall importance, fulfillment in existing architecture concepts and/or existing implementations and their relevance for one or more use cases. In the SPARC context four requirement groups were identified. During the course of the project, these groups required further refinement. In total, twelve requirement groups have been identified: (a) Recursive control plane (b) Network management (c) Openness and extensibility (d) Virtualization and isolation (e) OAM (technology-specific MPLS OAM / technology-agnostic Flow OAM) (f) Network resiliency (g) Control channel bootstrapping and topology discovery (h) Service creation (i) Energy-efficient networking (j) Quality of service (k) Multilayer aspects (l) Scalability These twelve groups of requirements cover the majority of high priority requirements identified in D2.1. The mobile backhaul use-case was further analysed with a first attempt of a techno-economic cost study. Given the immaturity of SDN in the mobile backhaul context several assumptions have to be made, often based on expert opinions or results from previous preliminary studies. To cope with the uncertainty related to the gathered input a sensitivity analysis was performed to examine the effects of modifications of the critical parameters on the overall results. Two different scenarios were defined, one scenario covering state of the art design principles (“classical scenario”) and the other scenario to reflect advanced SDN developments (“SDN scenario”). For the considered parameters, the SDN scenario provides a capital expenditure advantage at 12%. The majority of capital expenditures savings is based on modifications in the pre-aggregation stages which is explained by the high number of sites at this partition of the network. A second contribution is based on the lower cost of first time installation. The savings in the pre-aggregation sites amount to up to 13% which is a bit higher than the total reduction of 12%. Introducing SDN however also involves introducing of centralized controllers to the network architecture which accounts for an extra 3% of the total cost. © SPARC consortium 2012 Page 3 of (80) Deliverable 2.2 Split Architecture - SPARC Within the OpenFlow community the focus is often on the promised capital expenditures reductions. Little attention is however given towards operational expenditures. The analysis shows an 11% reduction in OpEx in the SDN based scenario. The main benefits can be located in the network operations center where the cost of operational processes such as service provisioning and service management is reduced by 3% and 6% respectively. The environmental cost (energy consumption) has not been increased nor reduced. It could be however argued that the energy consumption of the router is reduced because part of the control plane functionality is now taken over by the SDN controller. This is open for further research. The performed sensitivity analysis introduces an overview on the level of uncertainty on the following parameters: - Cost of a SDN controller has a rather low impact on the capital expenditures - Number of OpenFlow enabled network elements one SDN controller is able to steer has a rather low impact as well on the overall cost basis - Effect of wholesale price discounts by vendor on SDN advantage has a contradictory effect o The benefits of SDN on capital expenditures are reduced when higher discounts are applied o The benefits of software defined networking on operational expenditures increase when higher discounts are applied o The overall delta between the scenarios varies from 12% without discount to 9% for capital expenditures and from 10.7% to 12.3% for operational expenditures with 50% discount - Effect of cost reduction in cost of operating system of router increases the delta between the scenarios by 50% for capital expenditures - The highest effect of change has the effect of extra reductions in hardware cost because of specialization and interoperability of devices with potential reduction of price points for the SDN scenario by 50% and a delta of up to 47% (CapEx) and 25% (OpEx) respectively. Again one has to mention that there exist a number of uncertainties in the techno-economic analysis and this has to be taken into account when viewing the results. Up to date, the impact of SDN on the existing telecommunication business environment is unclear. Therefore experts from the project tried to outline today’s market roles, their functions and possible future market roles. Based on this analysis, a questionnaire was developed, trying to answer the key questions: Which
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